Slide 1: Dilip Buildcon Limited – Investor Presentation Cover Letter
DILIP BUILDCON LIMITED IN FRASTRUCTURE & BEYOND Datc: - Nolember 11,2019 To To BSE Limited National Stock Exchange oflndia Ltd Listing Department Exchange Plaza, C-I, Block G P.J Tower, Dalal Street BandraKurla Complex, Murnbai- 400001 Bandra (E), Mumbai - 400051 Slock Symbol -540047 Stock Synbol -D
Slide 2: Earnings Presentation Q2 FY20
E A R N I N G S P R E S E N TAT I O N Q2 FY20
Slide 3: Content
CONTENT Standalone Financial Highlights Page: 03 Consolidated Financial Highlights Page: 26 Order Book and Project Status Page: 29 Strategy & Business Model Page: 48 Company Overview Page: 54 2 Earnings Presentation | November 2019
Slide 4: Standalone Financial Highlights
Standalone Financial Highlights 3 Earnings Presentation | November 2019
Slide 5: Key Highlights – New Orders
Key Highlights Sector Wise New Orders New Orders worth Rs. 61,707 Mn during FY20 till date across sectors i.e. Roads, Mining 29% Mining, Irrigation, Special Bridge, Airport Roads 42% • Worth Rs. 3,215 Mn for construction of extra-dosed bridge across Sharavathi backwaters from MoRTH in the state of K
Slide 6: Key Highlights – Projects Completed
Key Highlights Projects Completed Projects worth Rs. 54,113 Mn completed Maharashtra 14% during FY20 till date across 5 states Uttar Pradesh 33% • Lucknow-Sultanpur section worth of Rs. 17,800 Mn in Uttar Pradesh on 30.04.2019, 188 days prior to scheduled completion date, entitled for early Punjab c
Slide 7: Key Highlights
Key Highlights • Entered into Agreement(s) with Cube Highways and Infrastructure III Pte Limited (“Cube”) Singapore for sale of five under construction Hybrid Annuity Model (“HAM”) projects on 31-Aug-2019 – Divested Equity of Rs. 5,684 Mn • Won the prestigious SAP ACE award 2019 for Real-time Live E
Slide 8: Results Summary – Q2FY20 (Standalone)
Results Summary – Q2FY20 (Standalone ) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 11% 18,167 2,943 12% 3,288 16,365 802 -28% 577 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Airport Mining 12% -100% -47% 8% Q2FY20 16,010 - 43 1,971 Q2F
Slide 9: Results Summary – H1FY20 (Standalone)
Results Summary – H1FY20 (Standalone ) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 1% 2% 40,820 41,168 7,361 7,530 3,356 -45% 1,833 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Airport Mining -2% -100% 10% -55% 32% H1FY20 35,491 - 217 5
Slide 10: Result Update - Standalone
Result Update - Standalone (₹ mn) Particulars Q2FY20 Q1FY20 Q2FY19 Y-o-Y (%) H1FY20 H1FY19 Y-o-Y (%) Revenue 18,167 23,000 16,365 11% 41,168 40,820 1% Operating expenses 14,879 18,759 13,422 11% 33,638 33,459 1% EBITDA 3,288 4,242 2,943 12% 7,530 7,361 2% EBITDA Margin (%) 18.10% 18.44% 17.98% - 18.
Slide 11: Revenue Split between H1 and H2 for last few years
Revenue Split between H1 and H2 for last few years 70% 62% 60% Based on 60% 57% 58% Guidance 55% 50% 43% 45% 42% 40% 40% 38% 30% 20% 10% 0% 2015-16 2016-17 2017-18 2018-19 2019-20 H1 H2 10 Earnings Presentation | November 2019
Slide 12: Standalone Profit & Loss – Q2FY20
Standalone Profit & Loss – Q2FY20 (₹ mn) Standalone Particulars Highlights Q2FY20 Q2FY19 Revenue from Operations 18,093 16,323 74 42 • Revenue increased by 11% on Y-o-Y Other income basis Total Income 18,167 16,365 Expenses • PAT decreased by 28% Y-o-Y basis Cost of materials consumed 14,334 13,158
Slide 13: Standalone Profit & Loss – H1FY20
Standalone Profit & Loss – H1FY20 (₹ mn) Standalone Particulars Highlights H1FY20 H1FY19 Revenue from Operations 41,031 40,726 137 93 • Revenue increased by 1% on Y-o-Y Other income basis Total Income 41,167 40,819 Expenses • PAT decreased by 45% on Y-o-Y Cost of materials consumed 31,551 31,220 bas
Slide 14: Standalone Balance Sheet – Assets
Standalone Balance Sheet (₹ mn) Particulars 30.09.2019 30.06.2019 30.09.2018 ASSETS Non-current assets (a) Property, plant and equipment 20,553 20,855 17,814 (b) Capital work in progress 1 1 208 (c) Other Intangible Assets 304 323 24 (d) Financial assets (i) Investments 9,121 6,382 2,421 (ii) Other
Slide 15: Standalone Balance Sheet – Equity and Liabilities
Standalone Balance Sheet (₹ Mn) Particulars 30.09.2019 30.06.2019 30.09.2018 EQUITY AND LIABILITIES Equity (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 32,258 31,846 26,394 Total equity 33,626 33,214 27,762 Liabilities Non-current liabilities (a) Financial liabilities (i) Borrowings 9
Slide 16: Standalone Cash flow – Q2/H1 FY20
Standalone Cash flow– Q2/H1 FY20 (₹ Mn) Particulars Q1FY20 Q2FY20 H1FY20 CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax as per Statement of Profit and Loss 1,607 697 2,304 Adjustments for: Depreciation 1,047 1,056 2,103 Interest Income (63) (74) (137) (Profit)/Loss on sale of fixed assets
Slide 17: Standalone Cash flow – Q2/H1 FY20
Standalone Cash flow– Q2/H1 FY20 (₹ Mn) Particulars Q1FY20 Q2FY20 H1FY20 CASH FLOW FROM INVESTMENT ACTIVITIES Purchase of Fixed Assets (767) (732) (1,499) Purchase of Investments (924) (3,087) (4,011) Interest Received 63 74 137 NET CASH USED IN INVESTING ACTIVITIES (TOTAL B) (1,628) (3,746) (5,374)
Slide 18: Working Capital
Working Capital Particulars Q2FY20 Q1FY20 Q2FY19 Debtors Days 51 57 53 Inventories Days 104 104 91 Total 155 161 144 Less: Creditors Days 55 69 48 Working Capital Days 100 92 96 Inventory Stock 25,028 24,872 20,301 WIP 1,276 921 1,042 Total 26,305 25,793 21,343 17 Earnings Presentation | November 20
Slide 19: Net Working Capital Days – Quarterly
Net Working Capital Days – Quarterly 140 127 127 119 120 103 119 103 96 92 100 100 87 113 83 102 89 85 80 72 71 63 77 61 60 61 62 65 59 104 104 95 100 86 53 91 89 40 37 49 71 69 69 60 55 56 57 55 48 51 20 0 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 31.03
Slide 20: Net Debt trend from March to September
Net Debt trend for last 3 years from March to September Quarter 27,935 34,473 33,876 24,497 31,792 27,936 Net Debt Net Debt Net Debt 31.03.2017 30.09.2017 31.03.2018 30.09.2018 31.03.2019 30.09.2019 There has always been an increase in net debt from 31st March to 30th September. However, we have imp
Slide 21: Net Debt to Equity Ratio – Quarterly
Net Debt to Equity Ratio – Quarterly 1.32 1.35 1.35 1.30 1.24 1.13 1.14 1.16 1.06 1.01 0.95 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 31.03.2019 30.06.2019 30.09.2019 Rs. Mn 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.
Slide 22: Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt)
Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt) 0.79 0.87 0.81 0.80 0.77 0.63 0.69 0.70 0.58 0.55 0.53 0.48 0.53 0.51 0.50 0.47 0.50 0.45 0.46 0.48 0.46 1.32 1.35 1.35 0.44 1.30 1.24 1.13 1.14 1.16 1.06 1.01 0.95 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.20
Slide 23: Net Debt to Equity Ratio – Annually
Net Debt to Equity Ratio – Annually 2.27 1.32 1.13 1.06 0.95 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.09.2019 Rs. Mn 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.09.2019 Net Debt 24,068 24,497 27,800 33,876 31,796 Equity 10,621 18,529 24,571 32,044 33,626 22 Earnings Presentation | November
Slide 24: Net Debt to Equity Ratio – Annually (Working Capital & Equipment Debt)
Net Debt to Equity Ratio – Annually (Working Capital & Equipment Debt) 1.31 0.96 0.79 0.63 0.58 0.53 0.51 2.27 0.50 0.48 0.44 1.32 1.13 1.06 0.95 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.09.2019 Net Debt/Equity Equipment Debt/Equity Working Capital Debt/Equity Rs. Mn 31.03.2016 31.03.2017 31.0
Slide 25: Asset Utilisation
Asset Utilisation 4.40 4.40 4.24 4.26 3.04 2.89 2.21 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 30.09.2019 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 30.09.2019 Revenue 26,301 41,011 51,091 77,614 91,646 90,192 91,873 Net Block 11,890 14,204 16,82
Slide 26: Income Tax
Income Tax o Effective tax rate for H1FY20 is 20.6% o MAT credit unutilized as on 30th September 2019 is Rs. 4,025 Mn o Effective tax rate for FY 2019-20 will be in the range of 30-32%. However, Company does not envisage additional payouts towards tax over and above available MAT credit and TDS o Co
Slide 27: Consolidated Financial Highlights
Consolidated Financial Highlights 26 Earnings Presentation | November 2019
Slide 28: Consolidated Profit & Loss – Q2FY20
Consolidated Profit & Loss – Q2FY20 (₹ mn) Particulars Q2FY20 Q1FY20 Q2FY19 Revenue from Operations 19,944 24,364 17,281 Other income 31 138 134 Total Income 19,975 24,503 17,415 Expenses Cost of materials consumed 14,830 17,692 13,572 Changes in inventories of finished goods, Stock-in -Trade and wo
Slide 29: Consolidated Profit & Loss – H1FY20
Consolidated Profit & Loss – H1FY20 (₹ mn) Particulars H1FY20 H1FY19 Revenue from Operations 44,308 42,507 Other income 169 230 Total Income 44,478 42,377 Expenses Cost of materials consumed 32,522 32,193 Changes in inventories of finished goods, Stock-in -Trade and work-in-progress 411 327 Employee
Slide 30: Order Book and Project Status
Order Book and Project Status 29 Earnings Presentation | November 2019
Slide 31: Business Division
Business Division ROADS & HIGHWAYS IRRIGATION URBAN DEVELOPMENT MINING METRO SPECIAL BRIDGES AIRPORT TUNNEL 30 Earnings Presentation | November 2019
Slide 32: Total Order Book
Total Order Book (₹ mn) Excluding Bundelkhand Expressway, Gorakhpur Expressway & Rajkot Airport of amounting 238,881 Rs. 31,822 Mn which are received in Q3FY20 211,718 202,926 190,290 175,683 107,787 74,747 51,609 FY14 FY15 FY16 FY17 FY18 FY19 Q1FY20 Q2FY20 31 Earnings Presentation | November 2019
Slide 33: Order Book – Proven diversification
Order Book – Proven diversification Urban Development Special Metro Special Tunnel Irrigation Irrigation Airport 0.59% Bridge 2.01% Airport Bridge 1.91% 0.18% 2.53% Metro 0.11% 4.69% Special 0.23% 5.00% 2.04% Bridge Mining 3.69% Irrigation 7.45% Mining 6.91% 14.40% Mining Roads 21.37% Roads Roads 77
Slide 34: Order Book – Sector-wise
Order Book – Sector-wise (₹ mn) 62.65% 127,140 21.37% 43,372 6.91% 14,030 5.00% 2.04% 10,138 1.91% 4,142 0.11% 3,881 222 Roads Mining Irrigation Metro Special Bridge Tunnel Airport 33 Earnings Presentation | November 2019
Slide 35: Order Book – Client Wise
Order Book – Client Wise 56.15% 5.30% 18.49% 16.27% 0.79% 2.88% 0.11% NHAI MORTH COAL INDIA GOVT(UNDERTAKING) AAI PUNJAB STATE CORPORATION STATE 81% of the order book from the 19% of the order book from Central Government the state government 34 Earnings Presentation | November 2019
Slide 36: Order Book – Geography Wise
Order Book – Geography Wise Odisha Rajasthan 7% 3% Maharashtra 20% Jharkhand 9% Maharashtra Telangana Karnataka 4% Uttar Pradesh Andhra Pradesh Madhya Pradesh Karnataka Goa 23% Goa 4% Telangana Jharkhand Odisha Rajasthan Madhya Pradesh 18% Andhra Pradesh Uttar Pradesh 4% 8% 35 Earnings Presentation
Slide 37: Projects won in Q2FY20
Projects won in Q2FY20 Contract Value Project Name Type State Name of Employer excluding GST LOA Date Quarter (₹ mn) Extra-dosed bridge across Road Karnataka MoRTH 3,215 30.07.2019 Q2 Sharavathi backwaters Construction of Kharkai Dam at Icha Irrigation Jharkhand Water Resources Department 8,681 07.0
Slide 38: Projects won till date FY20
Projects won till date FY20 Contract Value Project Name Type State Name of Employer excluding GST LOA Date Quarter (₹ mn) Extra-dosed bridge across Sharavathi Road Karnataka MoRTH 3,215 30.07.2019 Q2 backwaters Construction of Kharkai Dam at Icha Irrigation Jharkhand Water Resources Department 8,681
Slide 39: Projects Completed in FY20
Projects Completed in FY20 Early Name of Cost of Scheduled Date Actual Type of Length Completion the Project Name State work of Completion Completion work (Kms) Days Employer (₹ mn) with EOD Date MoRTH Kathipudi-Kakinada Andhra Pradesh EPC 2,511 27.50 28.03.2019 28.03.2019 - NHAI Lucknow-Sultanpur U
Slide 40: Monetisation of Road Assets – Cube Deal
Monetisation of Road Assets – Cube Deal • Entered into Agreement(s) with Cube Highways and Infrastructure III Pte Limited (“Cube”) Singapore for sale of five under construction Hybrid Annuity Model (“HAM”) projects on 31-Aug-2019 for valuation of 1.41x on investment • Deal Structure: • 51% of requir
Slide 41: Monetisation of Road Assets – Shrem
Monetisation of Road Assets – Shrem (₹ mn) S. Particulars Total FY 18-19 Q1 19-20 Q2 19-20 Till 13th Q3 19-20 Q4 19-20 No. Actual Actual Actual Nov-19 Projected Projected A Amount receivable by DBL (i) Consideration against 18 (14+4) completed assets 8,140 7,000 160 68 - 912 - DBL’s upfront equity i
Slide 42: Status of 4 under construction divested HAM projects
Status of 4 under construction divested HAM projects Plan as per CA Milestone Achieved Early % of work Sr. Appointed Project Payment Milestone (Grant) Achieved done as on No Date Date Days Date Days (Days) 31.10.2019 1 Tuljapur Ausa 4th PM,75% Physical Progress 22.11.2017 13.10.2019 690 18.03.2019 4
Slide 43: Hybrid Road Projects – Current Status
Hybrid Road Projects – Current Status (₹ mn) Expected Total Awarding Appointed Length Project name State Appointed Equity Project Authority Date (Kms) Date Cost DBL Rewa Sidhi Highways Pvt. Ltd. Madhya Pradesh NHAI 14.12.2018 - 15.35 906 8,152 DBL Chandikhole Bhadrak Highways Pvt. Ltd. Odisha NHAI 1
Slide 44: Hybrid Road Projects – Progress
Hybrid Road Projects – Progress Milestone Early % of work Sr. Payment Appointed Plan as per CA Project Achieved Achieved done as on No Milestone (Grant) Date Date Days Date Days (Days) 31.10.2019 2nd PM, 30% 1 DBL Anandpuram Anakapalli Highways Pvt. Ltd. 04.01.2019 05.12.2019 335 01.09.2019 240 95 3
Slide 45: Equity commitment for recently won HAM projects
Equity commitment for recently won HAM projects (₹ mn) FY 18-19 Q1 FY 19-20 Q2 FY 19-20 Q3 FY 19-20 Q4 FY 19-20 FY 19-20 FY 20-21 Particulars Requirement Actual Actual Actual Projected Projected Projected Projected Investment for 12 new HAM 15,996 3,893 1,158 2,700 1,910 1,760 7,528 4,575 projects 4
Slide 46: Key Outstanding Road EPC Projects
Key Outstanding Road EPC Projects (₹ mn) Outstanding Order Schedule Date Contract Length Date of Project name Type Book as on LOA Date of Completion Value (Kms) Start 30.09.2019 with EOD Seoni–MP/MH Border Road 6,519 3,603 29.29 17.01.2018 Aug-18 Aug-20 Karodi to Telwadi Road 5,045 2,190 55.61 31.01
Slide 47: Airport and Mining Projects
Airport and Mining Projects Airport (₹ mn) Outstanding Order Contract Date of Schedule date Project name Type Book as on LOA Date Value Start of Completion 30.09.2019 Parallel Taxi Track and associated civil & electrical Airport 1,250 222 May-17 May-17 Nov-19 works at Dabolim Airport Goa Mining Outs
Slide 48: Irrigation and Metro Projects
Irrigation and Metro Projects Irrigation (₹ mn) Outstanding Order Contract Date of Schedule date Project name Type Book as on LOA Date Value Start of Completion 30.09.2019 Navnera Barrage Irrigation 5,366 5,366 Oct-18 Oct-18 Oct-22 Construction of Kharkai Dam at Icha Irrigation 8,664 8,664 Aug-19 Au
Slide 49: Strategy & Business Model
Strategy & Business Model 48 Earnings Presentation | November 2019
Slide 50: Strategy
Business Focus o Focus on road EPC for government clients. o Investment in equipment bank, process and control. o Attract and retain talented employees. o Opportunistically divest BOT assets De-Risk business through diversification Strategy o Geographical Diversification o Segment Diversification o
Slide 51: Business Model
Business Model Project Selection and Management Project Selection and Management Cost-effective procurement Equipment Equipment tracking and tracking and management management for efficiency for efficiency Efficient Project tracking Robust Careful project Clustering for to minimize contract selectio
Slide 52: Backward Integration
Pipe Rolling Electric Pole Bus Shelter Machine pto Foundry Ø200 X 8 Mm Pole blank cutting machine Metal Beam Metal Beam Bearing & 14MTR X 3 MTR Crash Barrier Crash Barrier Expansion Joint Gantry plazma Backward Integration 51 Earnings Presentation | November 2019
Slide 53: Execution Strategy
Execution Strategy Differentiated business model with complete control over execution 52 Earnings Presentation | November 2019
Slide 54: Investment Rationale
Investment Rationale Execution track record Sustainable growth Robust order book In-house No dependence on Experienced Process and system Capabilities sub-contractors leadership team driven company with High quality execution from Strong performance Diversification by supported by high reliance on l
Slide 55: Company Overview
Company Overview 54 Earnings Presentation | November 2019
Slide 56: Overview
Diversified areas of expertise No subcontracting, Pan India presence Roads, bridges, vertically integrated and 17 states buildings, metros, dams, use of technology canals, water supply & mining Largest owner of Construction Largest employer in Best project executors construction industry ~90% projec
Slide 57: Leadership Team
Leadership Team Bharat Singh President Bharat Singh joined Dilip Builders in 1988, prior to which he had a sole proprietorship concern. He has 32 years work of experience in the field of construction. At DBL he is responsible for administration and management of finance and accounts. Mr. Dilip Surya
Slide 58: Execution Team
Execution Team Mr. R S Garg Mr. Abhishek Shrivastava Mr. Ajay Kumar Mishra Mr. R B Singh Mr. Arun Kumar K Chief Financial Officer Company Secretary President – Contract Management AVP – Mining (Coal) AVP – Design & Technical Audit Mr. Mohan Tiwari Mr. Atul Joshi Mr. Nitin Shrivastava Mr. Raja Ghosh
Slide 59: Milestones
DBL achieves a record topline of INR 77,614 mn in FY17-18, registering a growth Bought first of 52% from FY16-17 Entered in Tunnels & Metro 1996 stone crusher 2006 Incorporated 2019 Segment 2018 DBL achieves a record topline of INR 91,646 mn in FY18-19, registering a Business of M/s Dilip Builders g
Slide 60: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades Highest Upliftment of Bitumen by Indian Oil in 2013 Fastest Growing Construction Company Single Largest Customer of BKT OTR (Large Category) by Construction World Tires in India in 2015 in 2016 Esteemed Customers of Metso NW Series Portable Plants Most Valued Custom
Slide 61: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades Commitment for Products and Services Award for Outstanding Contribution in by Ashok Leyland Roads & Highways from 8th EPC World in 2018 LEED Certification by Indian Green Building Council in 2014 Purchase of Volvo Trucks and Construction Equipment in 2016 Infrastruc
Slide 62: Sustainability
Animal Welfare & Wild life sanctuary Ensuring environmental sustainability, conservation of natural resources, ecological balances, prevention and taken care of Animals Orphanage Promoting healthcare including preventive health care for orphans Sustainability Cultural and social Promoting culture an
Slide 63: Pan India Project Execution Capability
(₹ mn) State Completed Ongoing Gross Ongoing Net Pan India Andhra Pradesh 29,045 13,750 8,518 Project Execution Himachal Chhattisgarh 3,681 6,165 106 Pradesh Capability Punjab Goa - 15,281 7,146 Haryana Gujarat 9,814 - - Rajasthan Uttar Pradesh Haryana 60 4,577 - Himachal Pradesh 1,187 - - Gujarat J
Slide 64: Thank You
Thank You Dilip Buildcon Limited Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. (Investor Relations) Kolar Road, Bhopal Madhya Pradesh - 462 016 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Lower 0755 - 4029999 Parel (E), Mumbai - 400 011 07